For all the stock market enthusiasts who have had a bad year, finally, there is good news in sight, the leading information technology company, Wipro, is all set to launch Rs 9,500 crore share buyback programme which will start from December 29, 2020 and will end on January 11, 2021.
Mentioning the same, Wipro officials said that we would like to inform all our stockholders that the company has received a thumbs up from the security Exchange Board of India (SEBI) earlier this week on December 21, 2020, to move forward with the share buyback programme.
As this news comes in, the Wipro shares are trading 2.62% up at Rs 364.
What is the Wipro share buyback programme?
Also called a share repurchase program, this means that Wipro would be buying its shares back from the stockholders and retain the ownership of the same. Doing so it will help in reducing the shares which are outstanding and increase the ownership stake of the remaining equity holders.
When would Wipro inform about the Share buyback programme?
- As stated by Wipro officials the company will send a letter off offer to shareholders by or before the end of this week, that is before the day of trading Decker 26, 2020.
- The proposal for share buyback has been up for discussion for over a month now, the proposal of the share buyback programme was accepted by the shareholders on November 17, 2020. With the majority of 99.78% votes, the motion passed the table and went forward.
- After the approval, SEBI was informed about the decision, proper decision making was done and on December 21, 2020, IT source Wipro received thumbs to go forward with a share buyback.
- Wipro since past few years has been buying back shares, un 2019, it bought its share back at Rs 325 per share and repurchased shares amounting to Rs 32 crores, followed by in 2017 for Rs 11,000 crores and in 2016, Rs 2500 crores.
- After the Bangalore based IT source Wipro announced about repurchasing of shares amounting to Rs 9500 crores, Ambani’s Tata Consultancy Services (TCS) announced it’s repurchase plan for Rs 3000 crore.
